European Union-U.S. Privacy Shield

The EU-U.S. Privacy Shield was a framework that allowed companies to legally transfer personal data from the European Union to the United States while ensuring protection of individuals' privacy rights. It established standards for data handling and included commitments by U.S. companies to safeguard EU citizens’ data, with oversight by U.S. authorities. However, it was invalidated in 2020 by the European Court of Justice, citing concerns over US surveillance practices and insufficient data protection. Since then, companies have sought alternative legal mechanisms to transfer data securely between the EU and the U.S.